Rane Holdings, (RHL), the holding company of Rane group, has divested its entire equity stake of 45.26 per cent in SasMos HET Technologies Ltd (SasMos) for an undisclosed amount.
The decision was taken at RHL’s board meeting on Thursday with a view to streamline and consolidate investments in the automotive, aerospace and defence sectors in alignment with the vision of the Rane group, the company said in a regulatory filing.
RHL and the promoters of SasMos are in discussion to conclude the terms of the sale and the transaction is subject to regulatory approvals and the deal is expected to be completed by December 31, 2016.
The move would enable RHL to unlock value in its investment made into SasMos, an unlisted associate company of RHL, according to a company statement.
L. Ganesh, Chairman Rane group said: “SasMos has been a rewarding investment and the group will continue to seek out investment opportunities in the aerospace sector.”
As part of its diversification plan, RHL during August 2011acquired 26 per cent equity stake in SasMos. And it was further increased its stake to 45.26 per cent in November 2014.
Net profit declinesRHL’s net profit fell by 28 per cent to Rs.10.12 crore for the year ended September 30, 2016 against Rs.14.03 crore due to lower income.
During the period under review, the company registered total income from operations of Rs.21.81 crore against Rs.25.37 crore.
